According to an aspect of the invention there is provided a method of optimizing a fixed route on a transit network, comprising the steps of: a) permitting a vehicle providing service on the fixed route to make deviations from the fixed route based on passenger requests; b) tracking the deviations and number of passenger requests corresponding to each deviation; c) submitting information from tracking step b) into a decision-making algorithm; and d) modifying the fixed route to include new stops based on results from the decision-making algorithm, as well as a system for implementing this method.